Avid, a leading technology provider that powers the media and entertainment industry, announced that its Board of Directors has authorized a share repurchase program pursuant to which Avid may purchase up to $115 million of its common stock.
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The Company’s decision to repurchase its shares, as well as the timing of such repurchases, will depend on a variety of factors, including the ongoing assessment of the Company’s capital needs, the market price of the Company’s common stock, general market conditions and other corporate considerations, as determined by management. The company expects to fund any repurchases using cash on hand and cash generated from operations.
“We now have an opportunity to unlock significantly greater value for shareholders resulting from our successful repositioning of the company to a growing subscription-based business model and delivering improved profitability,” said Jeff Rosica, Chief Executive Officer and President of Avid. Mr. Rosica continued, “As part of our long-term strategy, we believe returning capital through share repurchases will further accelerate returns for all shareholders and that this authorization will be a key part of our capital deployment strategy.”
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“Avid is in a strong financial position on a positive trajectory, with increasing Free Cash Flow and a solid growth strategy,” said Ken Gayron, Chief Financial Officer of Avid. Mr. Gayron continued, “We are reserving a portion of our Free Cash Flow to return to shareholders as part of our overall capital deployment strategy, and we believe this repurchase authorization should provide an attractive return on capital, as we are confident in our long term financial plan.”
Stock repurchases may be executed pursuant to trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934 and through various means, including, without limitation, open market transactions, privately negotiated transactions or otherwise. The share repurchase program does not obligate the Company to purchase any shares, and the program may be suspended or discontinued at any time.
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